Planning-----Credit-Check-----Money-Check-----Income-Check

With all the talk of how difficult it has been in the mortgage and real estate markets. I have to believe there are a large number of people who have postponed their plans to realize the American Dream of home ownership. Unfortunately, the media doesn't share all of the miracles that occur every day that allow people to move into new homes. Seems the media hasn't run headlines like, "Hundreds of Lehigh Valley Residents On the Move" with a sub-line that reads "Planning and Professionals Help Lead to Success." The article would start something like this, 'Although the news in the mortgage and real estate markets has not been overwhelmingly positive over the last several months, hundreds of Valley residents were on the move in August. These buyers are taking advantage of inventory that is working in their favor and interest rates that continue to be favorable. How are they doing it you may ask? Proper planning and assistance from Real Estate and Mortgage Professionals'......... One can only dream right?

Proper planning is unfortunately something that we have gotten away from over the last several years of what some call a Boom Market. I personally felt that the smoke emanating from that market was evidence of investor greed, along with an indication of influence akin to the Jamaican Bobsled team. But that's just my opinion. So here we are. Back to the point where buying a home is no longer an impulse purchase. Buying a home once again, as it always should have, takes planning. For some, that plan can be short term. For others, the plan may take a little bit longer. But anyone willing to put a plan in place can position themselves to own a home. Here are a few items to consider when formulating your plan:

Credit - Used to be you paid your bills on time, and your credit was great. No questions asked. Enter the credit score. Your credit score has an enormous impact on what programs are available to you as well as the rates and fees you will pay for those programs. Ideally, your score is higher than a 720 which allows you access to virtually every loan program in the market, at the best prices. However, it's not the end of the opportunity if its not. Consulting a mortgage professional as you begin your plan will provide you with information as to exactly how to increase your credit score over a period of time. Depending on how naughty, or nice you've been with your creditors in the past, that time frame will vary. Any mortgage consultant, who genuinely cares about people will be able to help. Be aware that there are still people in the mortgage business that want instant gratification rather than help you with your plan. Stay away from those folks!

Money - Yes Ladies and Gentlemen, it takes money to buy a home. It really always has. There are several programs that allow for smaller down payments and greater seller assisted closing costs. But in truth, being a home owner takes money. A plan that involves saving money is effective. Liquidating various cash and personal assets is also an option. Funds received from family members can also enter the mix. Due to requirements of sourcing and seasoning of funds as well as reserve requirements and gift allowances for some programs, it's best to get a mortgage professional on your side as soon as you elect to begin planning to purchase your home. No matter how short term or long term your plan maybe. A mortgage professional can help guide you in the proper direction regarding properly maneuvering your assets throughout your plan period.

Income- Stabilty of employment and consistency of income must also figure into your plan. Although 'stated income' loans are still available to self employed borrowers in the mortgage industry. The requirements and costs to obtain that credit can be somewhat difficult and cost prohibitive. It's expected that this product becomes totally unavailable in the not too distant future. 2 years of employment, with steady increases in income are of course optimal. However, requirements vary as to the source of income such as salary, hourly wage, overtime, commission, bonuses, etc. Calculations of the qualifying income vary. Again, it's best to get together with a trusted mortgage professional as you begin your plan to determine what exactly your qualifying income will be. As well as what your options are as to any potential promotions and or job changes you may be contemplating.

No matter how qualified, or for that matter, unqualified you feel you may be to own a home. Reaching out to a trusted mortgage professional is likely the best start to positioning yourself to make the move toward the American Dream. A strong plan, and commitment to that plan will absolutely get you where you want to go. In some cases, right away. In others sooner or later. The phrase goes "good things come to those who wait." In the case of buying a home, the phrase goes, "Good things come to those who plan!"

My name is Scott Geary, a Pennsylvania Mortgage Broker. I want to help you get your plan in place to realize the benefits of home ownership. Let's buy a home!